Indemnity to principals
Indemnity to principals provisions in contractor’s insurance policies provide cover for the client (the principal) in the event that the contractor is negligent and this results in a claim against the client. This may be a requirement of a construction contract, and contractors must check with their insurers that their policy include this sort of provision for the type of project that they are undertaking.
The requirement may be satisfied by a separate indemnity, or by extending the contractor’s own policy to indemnify the principal as if they were the insured, in which case, the policy will pay out if a claim is made against the principal as a result of work carried out by the contractor, as if the claim was being made against the contractor themselves.
 Related articles on Designing Buildings Wiki
- 3D animation for insurance risk analysis.
- Building Users' Insurance Against Latent Defects.
- Contractors' all-risk insurance.
- Contract works insurance.
- Directors and officers insurance.
- Employers’ liability insurance
- Flood insurance.
- Insurance for building design and construction.
- Integrated project insurance.
- Latent defects insurance.
- Legal indemnities.
- Professional Indemnity Insurance.
- Public liability insurance.
- Residual value insurance.
Featured articles and news
High quality and high density homes - is it what we need or is it storing up trouble?
Government announces its intention to strengthen planning rules to protect music venues and neighbours.
National Audit Office reports that there is little evidence that PFI offers better value than other forms of contracting.
What is liquidation and how does it apply to contractors in the construction industry?
Scrutiny is placed on Carillion's controversial 2013 decision to extend subcontractor payment terms to 120 days.
RSHP unveil their involvement in a boundary crossing which will provide a new entry point into Hong Kong.
With PFI currently under the spotlight due to Carillion, this introductory article explains what they are.
Estimates suggest that up to 30,000 small firms could be at risk of non-payment as a result of Carillion's collapse.
Sir Oliver Letwin to lead an independent review into the delays in the delivery of housing.
As Carillion collapses, read our article explaining insolvency in the construction industry.
43,000 jobs at risk as Carillion declares insolvency.